The wave of layoffs in the technology sector continues: Microsoft lays off 10,000 employees

Microsoft announced Wednesday that lay off 10,000 employeesabout 5% of its workforce, and that it has started reporting some of the layoffs.

The executive chairman, Satya NadellaFurthermore, he noted in a statement that the company is going through “significant changes”.

Nadella explained that when meeting with customers, he notices that they are no longer “accelerating their digital spending,” as seen during the pandemic, but rather opting to “optimize your digital spending to do more with less”.

“We are also seeing organizations across industries and geographies treading caution as some parts of the world are in recession and other parties anticipate it,” he adds.

Microsoft’s chief executive added that the company will take a write-down charge of 1.2 billion in earnings due to, among other things, severance costs and changes to its hardware portfolio.

According to information on their website, Microsoft currently has 221,000 employees Worldwide.

Microsoft’s bad time, in numbers

The software company’s revenue growth was slowed down in recent quarters. Next Tuesday, Microsoft will announce its latest quarterly results.

Its shares are down 23% in the past 12 months, in line with the Nasdaq index – where the main technology companies are listed – which fell by 26%. And 45 minutes after the stock market opened today, its shares are up a slight 0.25%.

Last July, Microsoft notified a round of layoffs affecting 1% of its workforce, which it had a total of about 180,000 employeesfollowing a “strategic adjustment” at the start of its new fiscal year.

Since the beginning of the new year, several tech companies have reduced their workforces while the covid boom that has increased the number of employees fades, while fears of a possible economic recession are growing.

Amazonia This month it said it planned to lay off more than 18,000 employees – of which 10,000 have already been laid off by 2022 – and last November, Facebook’s parent company, Objectiveit said it would eliminate more than 11,000 workers.

Lyft, Salesforce, DoorDash, Snap, and Twitter were other companies in the industry announcing layoffs in recent months.

With agency information.

SL